Newspapers Print Readers Decline

November 6th, 2007

The drop, reported by the Audit Bureau of Circulations, reflects the growing shift of readers to the Internet, where newspaper readership has climbed, and also a strategy by many major papers to shed unprofitable or marginally profitable print circulation.

Among the nation’s largest newspapers, only a handful held their own or registered slight increases in overall paid circulation for the period from April 1 to Sept. 30. Most papers showed significant declines, both weekday and Sunday.

For the first time, the audit bureau released, along with the traditional circulation figures, numbers produced by Scarborough Reports that reflected the total number of readers, both in print and online this marks the first time that such an independent analysis has been done, providing a benchmark for future reports.

Executives noted that newspaper Web sites — unlike their print counterparts — drew a lot of young adults, who are sought by advertisers. But advertisers have generally not considered an online reader to be as valuable as a print reader, so it remains to be seen what effect the numbers will have.

The audit bureau report showed a 2.6 percent decline in paid weekday circulation from the year-earlier period for more than 500 newspapers whose figures were available, and a 4.6 percent drop on Sundays for more than 600 newspapers.

USA Today, the top-selling weekday newspaper in the country — — had a 1 percent increase in circulation, to about 2.3 million.

Wall Street Journal , fell 1.5 percent, to about 2 million
online subscriptions topped 1 million.

New York Times – lost 4.5 percent of its weekday circulation (to less than 1.04 million) and 7.6 percent of its Sunday circulation (to 1.5 million).

Weekday Circulation Figures
Los Angeles Times 780,000 Sunday 1.1 million.
New York Post 667,000
The Daily News 681,000

AOL Moves Beyond Portal

November 6th, 2007

Randy Falco, who has been chief executive of AOL for nearly a year, is trying to emphasize the company’s growing operation that sells advertising on other Web sites. But he and Ron Grant, his powerful lieutenant, aren’t giving up on running AOL’s own sites.

They want to quickly move away from the vision of AOL.com as a portal that is simply a Web version of the all-in-one service AOL offered to its dial-up subscribers. Instead, they envision a network of loosely confederated Web sites, services, blogs and widgets that operate under a variety of names.  Said Mr. Falco:

“Publishing is no longer just about the portal.  We are going to be in as many different places as possible.”

OpenSocial Shakes It Up

November 6th, 2007

Chris DeWolfe, chief executive of MySpace, in a press conference at the Googleplex, as reported by the New York Times.

OpenSocial is going to be become the de facto standard for developers right out of the gate. It will have access to 200 million users, making it way bigger than any other platform out there.

OpenSocial is designed to allow third-party companies and developers to create one set of programs that work across the Web’s most popular social networks. Facebook, in contrast, asks developers to tailor their programs for the network in its own proprietary format. The Google group is counting that developers will eschew that extra effort and want to avoid any lock-in with one social network.

Internet-Based Storage Technology

November 6th, 2007

Dell’s acquisition of web-storage company EqualLogic underlines the growing importance of this market segment. “Storage is the fastest part of Dell’s business,” Mr. Dell said in an interview. “There’s an explosion in the amount of data being consumed.”

Mr. Dell said data storage today accounted for about $2.4 billion of Dell’s revenue of about $57 billion, but that figure, he said, is growing rapidly.

EqualLogic, based in Nashua, N.H., is the leading provider of the Internet-based storage technology known as iSCSI. It makes it easier for businesses to store data by using existing networks rather than installing a costly new dedicated fiber optics network.

Mr. Dell said iSCSI technology represented the fastest-growing segment of the overall storage industry.Andrew Reichman, an analyst with Forrester Research, said the deal would help Dell meet the growing storage demands of small and medium-sized companies that typically lack dedicated technology employees to deal with complex storage issues.

Tax Moratorium Extended

November 1st, 2007

The US Congress approved yesterday legislation to extend the moratorium on Internet access taxes, one day before it was set to expire. President Bush is expected to sign the measure, which received strong support in the House and the Senate. The tax ban was first approved in 1998 and has been renewed twice. The legislation also prohibits taxation of e-mail and instant messaging services that are not packaged with Internet access.

Do-Not-Track List Urged

November 1st, 2007

privacy_keyhole.jpgA coalition of consumer groups called yesterday for the creation of a do-not-track list that would permit internet users to opt out of behavioral tracking programs that use consumer data to deliver targeted ads. The groups seek disclosure notices saying that online ads resulted from behavioral tracking, and consumer review and editing of their ad network profiles. The proposal came as the Federal Trade Commission prepared for two days of meetings about online privacy.

In a separate development, the AOL division of Time Warner announced that it would enhance its system that allows users to remove themselves from tracking databases. Instead users would receive generic, not target, ads.

Internet Traffic Reports

October 29th, 2007

internet-traffic-report-screenshot.gifA number of websites and services have developed around the need to measure the flow of traffic over the internet. One of best-known is Internet Traffic Report. Here is their self-description:

The Internet Traffic Report monitors the flow of data around the world. It then displays a value between zero and 100. Higher values indicate faster and more reliable connections.

Read the rest of this entry »

Waiting for the Cloud

October 26th, 2007

Analysts say that “cloud computing” is the future, but Microsoft just reported an excellent quarter based on its traditional products. Sales of personal computers rose 14-16 percent, the server software group showed strong sales, sales of Windows Vista and Office 2007 were stronger than expected, and its entertainment and devices group showed solid growth and rare profits. Said the NY Times:

The mainstay businesses are thriving, but, analysts say, future growth will increasingly depend on how well Microsoft can do in selling online advertising and developing Internet services.

Webshots Sold for $45 Million

October 26th, 2007

Phone and video sharing site Webshots was sold by Cnet Networks for $45 million to American Greetings.  Webshots has more than 7 million unique visitors each month.

Twitter Growing But Small

October 25th, 2007

Micro-blogging site Twitter has grown from 100,000 users in March, when it was named best blog at the Web Awards at the South by Southwest festival, to an estimated 500,000 users today.

Others are imitating. One count found over 100 “Twitter clones” in 12  countries. The most notable start-up is Pownce, started by Kevin Rose of Digg fame. Pownce is a private messaging and file sharing service that shares some characteristics with social networks like Facebook.

Facebook Facts

October 25th, 2007

Yesterday’s Microsoft-Facebook deal made available new Facebook numbers.  Here’s a quick Facebook overview:

  • Members: 50 million
  • New Registered Users Each Day: 200,000
  • Founder: Mark Zuckerberg
  • Zuckerberg’s Share of Company: 20%
  • 2007 Projected Revenue: $125 million
  • Company Valuation: $15 billion (based on Microsoft investment)
  • Microsoft Investment: $240 million
  • Microsoft Share of Facebook: 1.6%

Microsoft Had to Win This One

October 25th, 2007

Andrew Frank of Gartner on Microsoft’s $240 million investment in Facebook:

Microsoft had lost a number of these. I think they were definitely feeling like they had to win this one.

Venture Capitalist Lee Lorenzen:

Once a social operating system takes over a country, it’s like it becomes the native language of that country.

Kevin Johnson, President of Microsoft Platform and Services Division

A major advertising syndication win for Microsoft.

Strategist Rob Enderle, Enderle Group

We are now stepping outside what is typically a business decision.

Steve Ballmer, Microsoft Chief Executive

There can’t be any more deep technology in Facebook than what dozens of people could write in a couple of years.

Legal Industry Off-Shoring in India

September 6th, 2007

hindu.gifThursday’s edition of The Hindu predicts a rapidly increasing legal off-shoring industry in India. Their predictions: 1. Corporations, not Western law firms, will drive the market in the years ahead. 2. Another way that corporations will drive the market, indirectly, is by obtaining flat (or fixed) rate billing from their outside counsel, instead of hourly billing. Flat rate billing will cause many law firms to realise that offshore providers can be important allies in improving their bottom line, rather than competitive enemies. Read the rest of this entry »

Thomson Buys Property Tax Unit

September 4th, 2007

thomson.gifThomson Corp. agreed to acquire the Deloitte Tax LLP Property Tax Services business for an undisclosed amount. The PTS division, which employs more than 420 professionals, provides property tax compliance outsourcing and consulting services, such as real estate appeals and complex property valuation. Thomson said the business will become part of its Tax & Accounting segment upon completion. Read Article

Text Messages Doubled in 2006

September 4th, 2007

texting.jpgData from CTIA, the Wireless Association, show that texting is still in a growth spurt: 158.6 billion text messages were sent in the USA in 2006, up from 81 billion the year before. The British-based Mobile Data Association dates text messaging to December 1992, when a British engineer sent the message “Merry Christmas” to a colleague from a computer to a mobile handset. Read Article